Assignment

Contract between two parties

Subject: Business Law

Submitted to: Sir Shahzad Ali Rana
Submitted by:-
Muhammad Ammar Khalid
01-211092-031
BBA- 4 (B)
Date: 13-05-2011

Department Of Management Sciences

Bahria University Islamabad

Contract between Mansha Group and Sitara Chemicals for the purchase of land
This is a legally binding contract when signed by both parties. Consult a professional before signing if not
fully understood!

Parties: Mansha group Lahore as a seller of the land and sitara chemicals Faisalabad as buyer of the land
hereby agree that the Seller shall sell and Buyer shall buy the land of 385 acres situated in the Lahore Cantt.
The land is situated at d-block south avenue Lahore cantt in the name of Mansha states.

The price of the land situated in the Lahore cantt is 50 crore rupees which is to be paid in 25 equal
installment. The fixed deposit of 15 percent of all the amount for and is to be paid as down payment along
with 3 installments before the custody of Land .

Total Purchase price= RS 150000000

TIME FOR ACCEPTANCE AND EFFECTIVE DATE: If this offer is not executed by both of the parties
hereto on or before 20/10/2011, the aforesaid deposit(s) shall be, at the option of the Buyer, returned to
him and this offer shall thereafter be null and void. The date of Contract ("Effective Date") shall be the date
when the last one of the Seller and Buyer has signed this offer.

This transaction shall be closed and the deed and other closing papers delivered on the day of 10/06/ 2011,
unless extended by other provisions of Contract, or by written agreement of the Parties.

RESTRICTIONS, EASEMENTS, LIMITATIONS: The Buyer shall take title subject only to: Zoning,
restrictions, prohibitions and other requirements imposed by governmental authority; Restrictions and
matters appearing on the plat or otherwise common to the subdivision; Public utility easements of record;
Taxes for year of closing and subsequent years, assumed mortgages and purchase money mortgages, if any;
other: provided, however, that none of the foregoing shall prevent use of the property for the purpose of
industrial use.

. EVIDENCE OF TITLE: Within twenty (20) days from the date hereof, Seller, at Seller's sole cost and
expense, shall cause a title insurance company mutually acceptable to the Parties ("Title Company") to
issue and deliver to Buyer an ALTA Form B title commitment ("Title Commitment") accompanied by one
copy of all documents affecting the Property, and which constitute exceptions to the Title Commitment.
Buyer shall give Seller written notice on or before twenty (20) days from the date of receipt of the Title
Commitment, if the condition of title as set forth in such Title Commitment and survey is not satisfactory in
Buyer's sole discretion. In the event that the condition of title is not acceptable, Buyer shall state which
exceptions to the Title Commitment are unacceptable. Seller shall, at its sole cost and expense promptly
undertake and use its best efforts to eliminate or modify all unacceptable matters to the reasonable
satisfaction of Buyer. In the event Seller is unable with the exercise of due diligence to satisfy said
objections within thirty (30) days after said notice, Buyer may, at its option: (i) extend the time period for
Seller to satisfy said objections, (ii) accept title subject to the objections raised by Buyer, without an
adjustment in the purchase price, in which event said objections shall be deemed to be waived for all
purposes, or (iii) rescind this Agreement, whereupon the deposit described herein shall be returned to Buyer
and this Agreement shall be of no further force and effect.

. LEASES: Seller shall, not less than fifteen (15) days prior to closing, furnish to Buyer copies of all written
leases and estoppel letters from each tenant (if any) specifying the nature and duration of said tenant's
occupancy, rental rates and advanced rent and security deposits paid by tenant. In the event Seller is unable
to obtain such letter from each tenant, the same information shall be furnished by Seller to Buyer within
said time period in the form of a Seller's affidavit, and Buyer may thereafter contact tenants to confirm such
information. Seller shall deliver and assign all original leases to Buyer at closing.

. PLACE OF CLOSING: Closing shall be held in the county wherein the Property is located, at the office
of the attorney or other closing agent designated by Buyer; provided, however, that if a portion of the
purchase price is to be derived from an institutional mortgagee, the requirements of said mortgagee as to
time of day, place and procedures for closing, and for disbursement of mortgage process, shall control,
anything in this contract to the contrary notwithstanding.

. TIME: Time is of the essence of this Contract. Any reference herein to time periods of less than six (6)
days shall in the computation thereof, exclude Saturdays, Sundays and legal holidays, and any time period
provided for herein which shall end on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the
next business day.

DOCUMENTS FOR CLOSING: Seller shall furnish deed, closing statement, affidavit, assignments of
leases, and any corrective instruments that may be required in connection with perfecting the title. Buyer
shall furnish mortgage, mortgage note, security agreement, and financing statement.

.EXPENSES: State documentary stamps which are required to be affixed to the instrument of conveyance,
intangible tax on and recording of purchase money mortgage to Seller, and cost of recording any corrective
instruments shall be paid by Seller. Documentary stamps to be affixed to the note or notes secured by the
purchase money mortgage, cost of recording the deed and financing statements shall be paid by Buyer.

. PRORATION OF TAXES: Taxes for the year of the closing shall be prorated to the date of closing. .

PROCEEDS OF SALE AND CLOSING PROCEDURE: The deed shall be recorded upon clearance of
funds and evidence of title continued at Buyer's expense, to show title in Buyer, without any encumbrances
or change which would render Seller's title unmarketable from the date of the last evidence, and the cash
proceeds of sale shall be held in escrow by Seller's attorney or by such other escrow agent as may be
mutually agreed upon for a period of not longer than five (5) days from and after closing date. If Seller's
title is rendered unmarketable, Buyer shall within said five (5) day period, notify Seller in writing of the
defect and Seller shall have thirty (30) days from date of receipt of such notification to cure said defect. In
the event Seller fails to timely cure said defect, all monies paid hereunder shall, upon written demand
therefore and within five (5) days thereafter, be returned to Buyer and, simultaneously with such
repayment, Buyer shall vacate the Property and re convey same to the Seller by special warranty deed. In
the event Buyer fails to make timely demand for refund, he shall take title as is, waiving all rights against
Seller as to such intervening defect except as may be available to Buyer by virtue of warranties, if any,
contained in deed.

ESCROW: Any escrow agent receiving funds is authorized and agrees by acceptance thereof to promptly
deposit and to hold same in escrow and to disburse same subject to clearance thereof in accordance with
terms and conditions of Contract. Failure of clearance of funds shall not excuse performance by the Buyer.

Contract, terms and condition

• Sitara chemicals and Mansha group are the concerned parties in the group.
• Sitara chemicals will purchase land consisting of 385 acres situated in the Lahore cantt
from Mansha Group the owner of land.
• The agreed price of land is 50 crore rupees.
• Sitara group will pay the amount in 25 equal installments and in 2 years
• The land will be handed over to the sitara group after the 3 installments and down
payment of 15 percent after 3 months by Mansha group the owner of the land 385 acres
situated in the Lahore cantt.
• This contract is valid only if both the parties are agreed on the terms and conditions.
• The representations and warranties set forth in this Contract shall be continuing and shall
be true and correct on and as of the closing date with the same force and effect as if made
at that time, and all of such representations and warranties shall survive the closing and
shall not be affected by any investigation, verification or approval by any party hereto or
by anyone on behalf of any party hereto.
 • The obligation of Buyer to close is conditioned upon Buyer's having acquired all the
necessary approvals and permits to use the property
• : No prior or present agreements or representations shall be binding upon any of the
Parties hereto unless incorporated in this Contract. No modification or change in this
Contract shall be valid or binding upon the Parties unless in writing, executed by the
Parties to be bound thereby.
• Seller shall, at no expense to Seller, actively work with Buyer to assist Buyer in
obtaining electricity, water, sewage, storm drainage, and other utility services for
development of the Property
• Taxes, assessments, rent, interest, insurance and other expenses and revenue of the
Property shall be prorated as of date of closing.
• :Seller shall convey title to the Property by statutory warranty deed subject only to
matters contained in Paragraph VII hereof and those otherwise accepted by Buyer.
Personal property shall, at the request of Buyer, be conveyed by an absolute bill of sale
with warranty of title, subject to such liens as may be otherwise provided for herein.
• Seller warrants and represents that there are no legal actions, suits or other legal or
administrative proceedings, including cases, pending or threatened or similar proceedings
affecting the Property or any portion thereof, nor has Seller knowledge that any such
action is presently contemplated which might or does affect the conveyance contemplated
hereunder.
•

Remedies:-
If anyone or both the parties will breach the contract by not acting on the above description and terms and
condition the contract will be null and void and following remedies will be applicable to the parties
concerned.
Suit for Rescission of contract: if one of the parties to a contract commit breach the other party may rescind
the contract an d need not to perform his obligation under the contract.
SUIT UPON QUANTUM MERIT: if one of the party is failed to perform a part of contract then other may
file suit upon quantum merit.
SUIT FOR SPECIFIC PERORMANCE: IF one of the parties will fail to perform his part of job then he is
liable to pay the loss to aggrieved party.
SUIT FOR AN INJUNCTION: IF one of the party or both will not follow the terms and conditions of the
contract then the court may issue the orders to party to follow the terms and conditions.

ATTORNEY FEES AND COSTS: In connection with any litigation including appellate proceedings
arising out of this Contract, the prevailing party shall be entitled to recover reasonable attorney's fees and
costs.

DEFAULT BY SELLER: In the event that Seller should fail to consummate the transaction contemplated
herein for any reason, except Buyer's default; (i) Buyer may enforce specific performance of this
Agreement in a court of competent jurisdiction and in such action shall have the right to recover damages
suffered by Buyer by reason of the delay in the acquisition of the Property, or (ii) may bring suit for
damages for breach of this Agreement, in which event, the deposit made hereunder shall be forthwith
returned to Buyer, or (iii) declare a default, demand and receive the return of the deposit. All rights,
powers, options or remedies afforded to Buyer either hereunder or by law shall be cumulative and not
alternative and the exercise of one right, power, option or remedy shall not bar other rights, powers, options
or remedies allowed herein or by law.

) DEFAULT BY BUYER: In the event Buyer should fail to consummate the transaction contemplated
herein for any reason, except default by Seller or the failure of Seller to satisfy any of the conditions to
Buyer's obligations, as set forth herein, Seller shall be entitled to retain the earnest money deposit, such
sum being agreed upon as liquidated damages for the failure of Buyer to perform the duties and obligations
imposed upon it by the terms and provisions of this Agreement and because of the difficulty, inconvenience
and uncertainty of ascertaining actual damages, and no other damages, rights or remedies shall in any case
be collectible, enforceable or available to Seller other than as provided in this Section, and Seller agrees to
accept and take said deposit as Seller's total damages and relief hereunder in such event.

..

Seller ‘s Particulars and Sig. Buyer’s particulars and sig.

Mansha Group Lahore Sitara Chemicals Faisalabad

Witnesses from buyer

Witness 1: ABC NIC : 12345
Witness 2: DEFG NIC:6789

Witnesses from seller

Witness 1: xyz NIC :872737
Witness2: JKLM NIC :992929

BROKERAGE FEE: Mansha group Seller Sitara chemicals Buyer agrees to pay the registered real estate
Broker named below compensation in the total amount of 1 percent of purchase price for his services in
accordance to the contract in affect between the two parties.

Signatures:

Broker: ABC real estate

Seller: Mansha Group

Buyer: Sitara Chemicals